Your children are growing up towards a stage of independence and it is high time you as a parent started helping them become financially literate.
Encouraging saving habits from an early age will ensure your children are able to make wise decisions when they’re responsible for their finances in the future. There are several ways to ensure your child understands ‘the money talk’ without feeling like they are being denied freedom.
Showing your kids ways to spend less will come in handy when your family is facing an impending financial crisis. Here are some useful tips to share with them to encourage saving habits:
Recycle and reuse, especially clothes. Your older kid’s clothes might fit their younger sibling so instead of spending a lot on brand new clothes, you could pass them on. Another idea is to trade clothes; this can be achieved through international stores like Buffalo exchange or Closet 49 here in Kenya where you can offer to trade your gently used clothes with something different of the same value.
Teach your kids to save on power by turning off the lights when not in use and when not in need. Teach them not to leave running water unattended which will definitely raise your monthly bill.
Money is given as a reward for work done. Allow your teenagers to get simple odds jobs around the neighborhood. With this ‘income’ they can buy what they want. It not only teaches them about financial literacy but also teaches them the value of hard work. With time they will learn how to save. The job should be age appropriate of course; you do not want to be sued for child labor.
With their hard earned money, they will learn how to budget for what they need. Occasionally the guardian should contribute, but ultimately the lesson you’re after is teaching them the value of money and why it should not be misused just because you can. It will wisen their view of things like overspending and moderation.
Help them open a bank account and agree on a certain amount of money that will be topped up often and by the time they become adults they will know enough about money (maybe even enough to survive the adult job market).
When you’re going to the mall or the market, make a shopping list and stick to it. Let the kids make a list of the most important things needed at home deliberating on importance to reduce spending. Carry cash only when possible to prevent spending more like you’re bound to do when you use credit and debit cards. With cash only it is not possible to spend more than what you can afford.